BHAGERIA INDUSTRIES LTD

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2 BHAGERIA INDUSTRIES LTD INVESTOR PRESENTATION February 2018

3 SAFE HARBOR This presentation and the accompanying slides (the Presentation ), which have been prepared by Bhageria Industries Limited (the Company ), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded Certain matters discussed in this Presentation may contain statements regarding the Company s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company s ability to successfully implement its strategy, the Company s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company s market preferences and its exposure to market risks, as well as other risks. The Company s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections

4 Q3FY18 RESULT HIGHLIGHTS

5 Q3FY18 & 9MFY18 Result Highlights Rs Cr Q3FY18 Q3FY17 % Change 9MFY18 9MFY17 % Change Net Sales % % Cost of Materials Consumed % % Employee Benefit Expense % % Job Work Expenses % % Other Expenses % % Total Expenses % % EBITDA % % EBITDA margin 27.90% 12.75% % 17.66% -- Other Income % % Depreciation % % Interest % % PBT % % Tax Expenses (Credits) % % PAT % % PAT Margin 16.32% 8.52% % 12.74% --

6 Balance sheet Rs Cr Mar 17 Sep 17 Rs Cr Mar 17 Sep 17 Share Capital Reserves Shareholders' Funds Long Term Borrowings Deferred Tax Liabilities Total Non-Current Liabilities Trade Payables Other Current Liabilities Short Term Provisions Short Term Borrowings Total Current Liabilities Total Liabilities Fixed Assets incl. CWIP Long Term Loans & Advances Total Non-Current Assets Current Investments Inventories Trade Receivables Cash and Bank Short term Loans and Advances Other Current Assets Total Current Assets Total Assets

7 COMPANY OVERVIEW

8 Leading manufacturer of dye intermediates Dye Intermediates H-Acid Vinyl Sulphone Gamma Acid 2 Manufacturing plants 10+ Ship-to-countries 344 Revenue in Rs Cr (FY17) 30% + Return on Capital Employed 18% EBITDA Margin (FY17) EPS Rs 27 per share (FY17) 500+ Employees Dividend Rs 5 per share (100%, FY17)

9 with presence across major product categories PRODUCT INDIAN MARKET SHARE REVENUE CONTRIBUTION* CAPACITY HIGHLIGHTS H-Acid 13% 43% 3,000 TPA Captive solar power Moving towards zero discharge Vinyl Sulphone 5% 20% 4,200 TPA Located in the chemical belt of Gujarat Effluent treatment plant Gamma Acid 30% 9% 600 TPA Moving towards zero discharge Major end user industries: Textiles and Leather *for 9MFY18

10 History and evolution Became a listed entity with a objective to fund additional capacity for new products Started exporting to Japan and other developed countries Foray into Solar roof top panels with a capacity of 2.80 MWP Commissioned 30MW solar plant Entered the dye intermediates business by setting up a Vinyl Sulphone plant with a capacity of 540 TPA Expanded Vinyl Suplhone Capacity to 3600 TPA from 540 TPA Changed name to Bhageria Industries from Bhageria Dye Chem Solar PPA signed with SECI for 25 years with a capacity of 30MW Listed with National Stock Exchange (NSE) Stock split from face value of Rs 10 to Rs 5

11 Promoters with significant industry experience Suresh Bhageria Chairman Has experience of more than 30 years in the Dyes & Dyes Intermediates Industry of Drugs and Pharmaceuticals Holds a degree in Bachelor of Commerce Vinod Bhageria Managing Director Has experience of more than 30 years in the areas of Dyes & Dyes Intermediates Industry, Finance, Taxation, Audit & other allied matters. Holds a degree in Bachelor of Commerce Vikas Bhageria Joint Managing Director Experience of more than 10 years in the areas General Business Management & Project Execution Bachelor of Commerce and Master of Computer Applications Chandraprabha Bhageria Executive Director Has an experience of over 25 Years in general management & communication

12 Supported by board of directors SP Tulsian Independent Director PS Dalvi Independent Director OP Bubna Independent Director Shyam Agrawal Independent Director Sandeep Singh Independent Director Surendra Gupta Independent Director A renowned market analyst with rich experience of over 36 years; a commerce and law graduate, holds professional qualifications of Chartered Accountancy & Company Secretary Has specialization in Chemical industry and having experience of over 38 year in various fields. He is a Qualified B.Sc (Hons) Tech Has an experience of over 40 Years in taxation field. He is Qualified B.Com from Mumbai University and M.B.A from S.P. Jain Institute of Management and research A reputed eye specialist. He has a rich experience of more than 35 years as a surgeon in the field of ophthalmology A renowned Media Professional. Specialised in Media Planning from the Mudra Institute of Communications Ahmedabad & in General Business Management from IIIM, Bangalore Has expertise in taxation having experience of over 2 decades. He is a well known philanthropist & holds professional qualifications of Chartered Accountancy & Company Secretary

13 Manufacturing facilities Vapi, Gujarat - Vinyl Sulphone o Latest upgraded production facilities o Best pollution control facilities o Moving towards zero discharge: Recent investment of 9 crore for zero discharge facility/equipment Boisar, Maharshtra - H-Acid/Gamma Acid o Spread over 27 acres square metres with more land available for expansion o Captive solar power plant leading to cost saving o Effluent Treatment Plant; Treatment of waste water within permissible limits before disposal & 30% of the waste water is reused

14 Focus on Safety, Health & Environment Safety Health Environment o Safety representative For each plant. o Fire hydrant for each plant o Safety training o Classroom training o On job training o Mock drill for Ethyl Oxide conducted by Reliance o In-house occupational Health Center o Part time doctor o Medical representatives o Pre-medical checkup o Annual medical checkup o Special camps o Air pollution Management o In-house facilities o Recover & re-use o Solid waste management o Sludge and gypsum o Waste water management (Inhouse facilities)

15 Long term client partnerships Domestic Clients Global Clients Domestic Clients PT Sinar Modern Dyestuff & Pigments

16 Exports contributing to ~28% of revenues Europe 6% US 5% Domestic 72% Exports 28% Asia Pacific 89% As on 6MFY18

17 Solar foray 25 year PPA with Solar Energy Corporation of India (SECI) in Maharashtra Capacity - 30MW Tariff Rs 4.41/unit Total project capex Rs 180 cr Solar rooftop solution - 25 year PPA with Asahi India Glass Ltd, TRIL Ltd & Lucas Ltd Capacity 3 MW Tariff Rs 6.61/unit

18 Sustainable inclusive growth Heath & Safety Installed Water Purification Plant at Kamptee & Mauda at Nagpur Village Sanitation Construction of toilets at Kachhi Gaam, Vapi Eye Care Donated cataract operation equipments to Param Shakti Peeth, a non-profit organization serving the underprivileged in Delhi

19 FINANCIAL HIGHLIGHTS

20 Improving profitability Revenue Rs cr EBITDA margins % PAT margins % FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17

21 High return ratios RoE % RoCE % Net Debt/ Equity x FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17

22 With consistent dividend paying track record Dividend Payout % Dividend % of face value FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Highest dividend (100% of face value) paid in FY17 Company paying dividend since inception

23 Annual Consolidated Profitability highlights Rs Cr FY15 FY16 FY17 Gross Sales Less: Excise Duty Net Sales Total Operating Income Cost of Materials Consumed Employee Benefit Expense Other Expenses Total Expenses EBITDA EBITDA margin 13.5% 11.1% 17.8% Other Income Depreciation Interest PBT Tax Expenses (Credits) PAT PAT Margin 8.9% 6.4% 12.6%

24 Thank You Mr. Rakesh Kachhadiya 1002, 10 th Flr, Topiwala Centre, Off S.V road, Goregaon (W), Mumbai Mr. Rajeev Menon/Ms. Pooja Dokania / B/ 1011A, Kanakia Wall Street, Andheri (East), Mumbai